Javier Molina, Etoro.- With Donald Trump's victory in the U.S. presidential elections, the cryptoasset market, specifically bitcoin, has begun to react anticipating possible policies that could benefit these digital assets.
From a technical analysis perspective and regardless of the election results in the U.S., the technical levels that the price of bitcoin can currently reach are between 80,000 and 90,000. If his victory is confirmed, the combination of Trump's favorable stance towards the crypto ecosystem and the expectation of a more permissive regulatory environment suggests an interesting outlook, though not without risks.
It is curious to observe how some memecoins like Doge (Elon Musk's favorite) appreciate by 20% under expectations that seem difficult to fulfill.
Trump's victory represents an opportunity for enthusiasts and believers in cryptoassets. His administration has expressed the intention to make the United States the "world capital of bitcoin and cryptocurrencies," suggesting a possible more favorable approach to this sector. This perspective of regulatory support could encourage large institutions to turn to bitcoin, increasing institutional adoption and, therefore, the demand and value of this asset.
Furthermore, if the increase in debt and possible inflation rise continues, as well as the trend of reducing interest rates in the United States, risk assets like bitcoin could benefit even more, as investors would seek alternatives to diversify their portfolios in a context of cheap money.
However, despite the seemingly encouraging outlook, there are significant risks. The crypto market has high volatility as it is a nascent market and projects, and a possible increase in the price of bitcoin could also be accompanied by sharp and unexpected movements. Volatility, as seen in today's session, will be the norm.
Moreover, although Trump has shown support for digital assets, the implementation of favorable policies will depend on collaboration with Congress and regulatory bodies. Legislative obstacles or changes in the stance of financial authorities could limit the scope of his pro-crypto policies.
Given these circumstances, for those seeking investment opportunities in bitcoin, knowing the risks and the investment limitations to be made (no more than 5-5% of a portfolio), Trump's presidency presents an attractive but uncertain scenario. The possibility of an increase in bitcoin adoption and an open policy towards the sector could lead this asset to new highs.
However, investors must consider their risk tolerance and conduct thorough analysis, as the crypto market will continue to be dynamic and volatile in the short and medium term.
This content is for informational and educational purposes only and should not be considered as investment advice or a recommendation. Past performance is not an indication of future results. CFDs are leveraged products and carry a high risk to your capital.
Investment in cryptoassets is not regulated in some EU countries or in the UK. There is no consumer protection. Your capital is subject to risks.